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Evaluating potential investments in new technologies: Balancing assessments of potential benefits with assessments of potential disbenefits, reliability and utilization

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  • Fox, Stephen

Abstract

In recent years, the assessment of intangible benefits has become an explicit requirement of investment evaluation techniques. By contrast, assessments of three factors which can prevent the realization of any benefits have not become an explicit requirement. Those three factors are disbenefits, reliability and utilization. The importance of these factors may sometimes be identified prior to investment evaluation when exploratory methods such as contingency planning are used. However, evidence presented in this paper suggests that these three factors are often overlooked. Further, the evidence presented in this paper suggests that investment performance often suffers as a result. Accordingly, it is argued that investment evaluations need to be balanced by making assessments of disbenefits, reliability and utilization an explicit requirement. This argument is supported by reporting of experiences from action research. These experiences indicate that investment evaluations can be balanced by making assessments of disbenefits, reliability and utilization an explicit requirement.

Suggested Citation

  • Fox, Stephen, 2008. "Evaluating potential investments in new technologies: Balancing assessments of potential benefits with assessments of potential disbenefits, reliability and utilization," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(8), pages 1197-1218.
  • Handle: RePEc:eee:crpeac:v:19:y:2008:i:8:p:1197-1218
    DOI: 10.1016/j.cpa.2007.11.002
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    References listed on IDEAS

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    1. Oecd, 2003. "Seizing the Benefits of ICT in a Digital Economy," OECD Digital Economy Papers 72, OECD Publishing.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
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    4. Hempell, Thomas, 2002. "What's Spurious, What's Real? Measuring the Productivity Impacts of ICT at the Firm-Level," ZEW Discussion Papers 02-42, ZEW - Leibniz Centre for European Economic Research.
    5. Slagmulder, Regine & Bruggeman, Werner & van Wassenhove, Luk, 1995. "An empirical study of capital budgeting practices for strategic investments in CIM technologies," International Journal of Production Economics, Elsevier, vol. 40(2-3), pages 121-152, August.
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    Cited by:

    1. Francesco Virili & Cristiano Ghiringhelli, 2021. "Uncertainty and Emerging Tensions in Organizational Change: A Grounded Theory Study on the Orchestrating Role of the Change Leader," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    2. Gregg, Daniel, 2009. "Non adoption of improved maize varieties in East Timor," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48159, Australian Agricultural and Resource Economics Society.
    3. Fox, Stephen & Aranko, Olli, 2017. "Healthcare framing: Critical realist framing for causal interdependencies and uncertainties within healthcare," Technology in Society, Elsevier, vol. 50(C), pages 66-72.
    4. Fox, Stephen, 2013. "The innovation big picture: Including effectiveness dependencies, efficiency dependencies, and potential negative effects within the framing of new technologies," Technology in Society, Elsevier, vol. 35(4), pages 306-314.

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